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IN THE MATTER OF: UNITED NORTHERN MORTGAGE ("United Northern Mortgage") |
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SETTLEMENT AGREEMENT |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
WHEREAS, United Northern Mortgage is a New York corporation that is currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on February 18, 2010, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of United Northern Mortgage to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, as a result of such examination, the Commissioner alleges that United Northern Mortgage employed or retained, during the period of August 2, 2008 through May 14, 2009, one (1) individual as a mortgage loan originator without licensing such individual, in violation of Section 36a-486(b) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against United Northern Mortgage, including proceedings to revoke United Northern Mortgage’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, issue a cease and desist order against United Northern Mortgage pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on United Northern Mortgage pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by agreed settlement, unless precluded by law;
WHEREAS, both the Commissioner and United Northern Mortgage acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, United Northern Mortgage agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, United Northern Mortgage herein represents to the Commissioner that the individual alleged to be an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the Connecticut General Statutes during the period of August 2, 2008 through May 14, 2009, is no longer engaged in any mortgage-related activity with United Northern Mortgage that would prohibit United Northern Mortgage from engaging the services of such individual without licensure as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, United Northern Mortgage herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with United Northern Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, United Northern Mortgage, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
NOW THEREFORE, the Commissioner and United Northern Mortgage enter into this Settlement Agreement as follows:
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No later than the date this Settlement Agreement is executed by United Northern Mortgage, United Northern Mortgage shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of One Thousand Dollars ($1,000) as a civil penalty; |
| 2. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against United Northern Mortgage based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against United Northern Mortgage based on the allegations contained herein if any representations made by United Northern Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if United Northern Mortgage is not fully complying with any term or condition stated herein; |
| 3. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of United Northern Mortgage to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and for its mortgage loan originators to apply for or obtain licensure from the Commissioner; |
| 4. | Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against United Northern Mortgage to enforce this Settlement Agreement if the Commissioner determines that United Northern Mortgage is not fully complying with any term or condition stated herein. For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner. |
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.
Dated at Hartford, Connecticut
this 26th day of May 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Don Giorgio, state on behalf of United Northern Mortgage Bankers Limited, that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of United Northern Mortgage Bankers Limited; that United Northern Mortgage Bankers Limited agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that United Northern Mortgage Bankers Limited voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Don Giorgio
Title: President
United Northern Mortgage Bankers Limited
State of: New York
County of: Nassau
On this the 13 day of May 2010, before me, Don Giorgio, the undersigned officer, personally appeared Don Giorgio who acknowledged himself to be the President of United Northern Mortgage Bankers Limited, a corporation, that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public:
Date Commission Expires: March 6, 2011